ANZ revamps life insurance offering

ANZ's OneCare is enhancing its insurance offering with the introduction of a tiered benefit structure and by helping customers return to work quicker.

Income Secure Essentials and Severity Trauma, which are a part of the OneCare range of life products, will provide greater choice for advisers whose clients are either already under the existing policies or might be new.

Severity Trauma's three-tiered payment structure provides a customer with 10% of the amount insured on diagnosis, 50% of the amount insured if their condition causes some impairment, and 100% of the amount insured if they suffer severe or permanent impairment.

Income Secure Essentials meanwhile is designed to reward customers undertaking rehabilitation to facilitate their return to work.

ANZ Wealth head of life insurance Gerard Kerr told Financial Standard a growing body of evidence shows that returning to work and contributing to the workforce can play an important role in people's return to health and "we want to support that as much as we can."

Seeing as the offer insurers provide can be truly tested in the claims environment, "we brought the capabilities of rehabilitation services forward to the beginning of the claim to give customers better options or choices if they are looking for rehabilitation," he said.

Customers can choose to go on programs and after a successful completion where they are back to work for up to six months, the insurer will provide additional payments.

Kerr said in an environment where premiums for income protection and trauma products will potentiality rise in the near-term, it is important for customers to have these types of insurance and these new offerings are designed to curb pricing customers out of the market.

He added by giving advisers greater choice, it adds another dimension to providing better individual solutions as not everyone can afford the top-of-the-range products.

"We see the adviser's role here as key - they're explaining the pros and cons of this offer and they're marrying that with the clients' individual needs."

RGA Australia head of underwriting and technical services, Meredith Barnes, commented the offerings are a good example of innovative product design.

"They have designed a product that goes back to the basic principles of insurance, protecting policyholders and providing genuine, affordable cover for when it is needed most," she said.

Read more: OneCareIncome Secure EssentialsSeverity TraumaANZ WealthGerard Kerr
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